Key facts
- Short sellers have an estimated $15.5 billion in paper profit on SpaceX shares.
- SpaceX shares have fallen below their initial public offering price of $135.
- SpaceX stock reached a new low of $115.26.
- Approximately 56% of SpaceX's free float shares were on loan.
- Tesla's stock fell nearly 15% to $319.69 after its second-quarter earnings report.
- Tesla stocks are down nearly 30% from their yearly highs.
Short sellers have accumulated an estimated $15.5 billion in paper profits from SpaceX shares, which have fallen below their initial public offering price of $135. The stock recently hit a low of $115.26, with approximately 56% of its free float shares on loan, according to Ortex Technologies. Meanwhile, Tesla shares also experienced a significant drop of nearly 15% to $319.69 following disappointing second-quarter earnings, contributing to a collective paper profit of nearly $20 billion for short sellers against both Musk-led companies. Tesla's stock is now down nearly 30% from its yearly highs, with its valuation at 151 times expected earnings. Despite bearish sentiment, some analysts see the pullback as an opportunity, and retail investors were net buyers of Tesla stock on Thursday.